Health Catalyst Finalizes Acquisition of Leading Care Management Company, Lumeon

Rhea-AI Summary

Health Catalyst (Nasdaq: HCAT) has successfully acquired Lumeon , a digital health company specializing in care orchestration. This strategic move aims to enhance Health Catalyst's core focus on clinical improvement and ambulatory operations, while also supporting its Tech-Enabled Managed Services partnerships. The acquisition combines Lumeon's Care Orchestration technology with Health Catalyst's advanced analytics and AI capabilities, potentially improving healthcare providers' ability to optimize care processes, lower costs, and enhance quality and patient safety.

The deal, funded through a mix of stock and cash, is expected to strengthen Health Catalyst's market position and expand its presence in the United Kingdom and potentially other international markets. Both companies share a mission to enable data-informed healthcare improvement, with the integration aiming to close the loop for data-driven transformation in healthcare organizations.

Positive

• Acquisition enhances Health Catalyst's core focus on clinical improvement and ambulatory operations
• Combination of Lumeon's Care Orchestration with Health Catalyst's analytics may improve healthcare providers' efficiency and patient care
• Potential for international market expansion, particularly in the United Kingdom
• Strengthens Health Catalyst's Tech-Enabled Managed Services partnerships

Negative

• Acquisition funded through mix of stock and cash, potentially impacting company's financial position
• Integration challenges may arise when combining two different technology platforms

SALT LAKE CITY, Aug. 8, 2024 /PRNewswire/ -- Health Catalyst, Inc. ("Health Catalyst," Nasdaq: HCAT), a leading provider of data and analytics technology and services to healthcare organizations, today announced it has successfully completed its acquisition of Lumeon Limited ("Lumeon"), a digital health company with operations in the U.S. and United Kingdom dedicated to helping provider organizations mend broken care coordination processes through automated care orchestration.

Leading providers in the U.S. and the United Kingdom use Lumeon's Care Orchestration technology to lower costs, optimize clinician and staff time, enhance revenue, and improve quality and patient safety. Together with Health Catalyst, this acquisition aims to leverage Lumeon's robust and market-leading platform and make it more intelligent through the application of advanced analytics, AI, and Health Catalyst Ignite™ data processing capabilities. Health Catalyst expects this combination will further strengthen and differentiate its core focus on clinical improvement and ambulatory operations, in addition to supporting its current and future Tech-Enabled Managed Services (TEMS) partnerships.

Health Catalyst also anticipates that Lumeon's presence in the United Kingdom will strengthen its ability to expand and more effectively pursue new opportunities in the region and potentially in other international markets.

Health Catalyst CEO Dan Burton said, "We are excited to welcome the Lumeon team and work alongside them in support of our shared mission – to enable massive, measurable, data-informed healthcare improvement. Effective care management is an essential part of a patient's clinical care journey, and the addition of Lumeon's Care Orchestration to Health Catalyst's existing technology and services offering will further enhance the analytics insights made available to providers seeking to transform clinical care."

Lumeon CEO Robbie Hughes said, "By combining the Health Catalyst Ignite AI platform with our Care Orchestration technology, we will enable healthcare organizations to not only access data-driven insights at scale but now also automate the clinical actions needed to ensure those insights are translated into personalized care processes for patients and care teams, closing the loop for data-driven transformation and accelerating our shared flywheel further and faster than ever before."

Health Catalyst funded the transaction with a mix of stock and cash. Additional details regarding the acquisition were included in Health Catalyst's Quarterly Report on Form 10-Q for the fiscal quarter that ended June 30, 2024, and was filed with the Securities and Exchange Commission ("SEC") on August 7, 2024.

About Health Catalyst
Health Catalyst is a leading provider of data and analytics technology and services to healthcare organizations committed to being the catalyst for massive, measurable, data-informed healthcare improvement. Its clients leverage the cloud-based data platform—powered by data from more than 100 million patient records and encompassing trillions of facts—as well as its analytics software and professional services expertise to make data-informed decisions and realize measurable clinical, financial, and operational improvements. Health Catalyst envisions a future in which all healthcare decisions are data informed.

Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include statements regarding Health Catalyst's acquisition of Lumeon, its integration with Health Catalyst and the benefits derived therefrom. Forward-looking statements are subject to risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance.

Important risks and uncertainties that could cause actual results to differ materially from Health Catalyst's expectations, plans and prospects, including the benefits that will be derived from this transaction. For a detailed discussion of the risk factors that could affect Health Catalyst's actual results, please refer to the risk factors identified in Health Catalyst's SEC reports, including, but not limited to, the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2024, filed with the SEC on August 7, 2024 and the Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 22, 2024. All information provided in this release and in the attachments is as of the date hereof, and Health Catalyst undertakes no duty to update or revise this information unless required by law.

Media Contact:
Amanda Hundt
Vice President, Corporate Communications
amanda.hundt@healthcatalyst.com
575-491-0974

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SOURCE Health Catalyst

FAQ

What is the purpose of Health Catalyst's acquisition of Lumeon?

The acquisition aims to enhance Health Catalyst's clinical improvement and ambulatory operations capabilities by integrating Lumeon's Care Orchestration technology with Health Catalyst's advanced analytics and AI. This combination is expected to improve healthcare providers' ability to optimize care processes, lower costs, and enhance quality and patient safety.

How was the acquisition of Lumeon by Health Catalyst (HCAT) funded?

Health Catalyst funded the acquisition of Lumeon through a mix of stock and cash. Detailed financial information was included in Health Catalyst's Quarterly Report on Form 10-Q filed with the SEC on August 7, 2024.

What are the expected benefits of Health Catalyst (HCAT) acquiring Lumeon?

The acquisition is expected to strengthen Health Catalyst's market position, enhance its core services, support Tech-Enabled Managed Services partnerships, and expand its presence in the UK and potentially other international markets. It also aims to improve healthcare providers' ability to optimize care processes and enhance patient care through combined technologies.

When did Health Catalyst (HCAT) complete the acquisition of Lumeon?

Health Catalyst announced the successful completion of its acquisition of Lumeon on August 8, 2024.